Budget bill offers opportunity to limit tax breaks
Posted June 10, 2019 in Press Releases
House took steps to do so, Senate should go further
The budget bill approved by the Ohio House would slash a number of tax breaks while creating or expanding new ones. In an analysis released today of tax provisions in the budget, Policy Matters Ohio called on the Senate to clean up the tax code by approving House action to rein in unneeded credits and exemptions, and take additional steps to do so.
“Altogether, this would generate well over $100 million a year that could be used to invest in Ohio and Ohioans,” said Wendy Patton, report co-author and Policy Matters senior project director. “Elimination of special interest tax breaks can provide public services that can rebuild lives and communities, protect children and the elderly, and restore services that thousands need.”
In the budget bill, the House repealed tax breaks for movie production, investment in coins and sales of timeshares in jet aircraft, among others. It also leveled the playing field among sellers by requiring online retailers to collect the sales tax already due and hotel intermediaries to collect taxes on the full price of hotel rooms they book.
However, in contrast to these positive moves, the House also created or expanded a number of credits and exemptions, such as one that would go mostly to wealthy investors in federal Opportunity Zones.
“Instead of creating these new exemptions and credits, the General Assembly should properly staff its Tax Expenditure Review Committee, which is charged with examining credits and exemptions but so far has done only a superficial job,” said Zach Schiller, report co-author and Policy Matters research director.